The recent currency volatility — rupee’s depreciation against international currencies — may have given heartburns to automakers that rely on imports or pay royalty to parent companies abroad. But for Maruti Suzuki India, favourable movement of the yen — the currency that matters the most — against the Indian rupee, has given it reasons to cheer.
The yen’s sharp fall against the rupee and the rupee’s depreciation against the US dollar, which in turn will bump up export realisations, are set to give a margin boost to the maker of Baleno and Brezza, said analysts.
The softening of commodity prices and slew of new SUV launches in the coming months will also aid margins, they said. Year-to-date, the yen has depreciated 11